- DRC announced Q2 2022 results with net revenue of VND1.1tn (USD49.8mn; -4.7% YoY) and NPAT-MI of VND84bn (USD3.7mn; -21% YoY).
- For 6M 2022, revenue and NPAT-MI was VND2.4tn (USD105.7mn; +14.9% YoY) and VND150bn (USD6.5mn; -11.9% YoY), respectively.
- We attribute the larger YoY decrease in NPAT-MI vs revenue in Q2 2022 to (1) a 1.0% GPM contraction due to rising input costs and (2) 1.3% YoY increase in SG&A.
- H1 2022 revenue and NPAT-MI completed 47.1% and 43.3% of our full-year forecasts, respectively. However, as H2 typically is a high season for DRC exports, we do not see major downside to our forecasts, pending a fuller review.